MIRA INFORM REPORT

 

 

Report No. :

302870

Report Date :

17.01.2015

 

IDENTIFICATION DETAILS

 

Name :

VF JEANSWEAR ARGENTINA S.R.L.

 

 

Registered Office :

Av Santa Rosa 126, F5310 Aimogasta, La Rioja

 

 

Country :

Argentina

 

 

Date of Incorporation :

19.11.1981

 

 

Legal Form :

Sociedad De Responsabilidad Limitada

 

 

Line of Business :

Textile Manufacturing Industry

 

 

No. of Employee :

480

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Argentina

B1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ARGENTINA - ECONOMIC OVERVIEW

 

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club.

 

Source : CIA

 

 

 

 

 

STATUTORY INFORMATION

 

Legal Name:

VF JEANSWEAR ARGENTINA S.R.L.

Trade Name:

Vanity Fair

CUIT:

30-59468004-5

Date Created:

1899

Date Incorporated:

19-11-1981

Legal Address:

 Av Santa Rosa 126, F5310 Aimogasta, La Rioja, Argentina

Operative Address:

 Av Santa Rosa 126, F5310 Aimogasta, La Rioja, Argentina

Telephone:

54 03827 42-0150

Fax:

54 03827 42-0150

Legal Form:

Sociedad De Responsabilidad Limitada

Email:

contacto_vf@vfc.com.ar

Registered in:

AGENCIA LA RIOJA
BELGRANO n°77
5300 LA RIOJA

Website:

www.vf-argentina.com.ar

Manager:

Maria Jose Inda, Manager

Staff:

480

Activity:

Textile Manufcturing Industry

 

 

BANKS

 

 

According to Argentinian Central Bank, the company maintains credit lines with the following banks:

 

 

BANK

AMOUNT IN AR$

CITIBANK N.A.

3654,5

BANCO SANTANDER RIO S.A.

2566,8

BANCO DE GALICIA Y BUENOS AIRES S.A.

1,1

AMERICAN EXPRESS ARGENTINA S.A.

1264,9

 

 

 

According to the classification of banking relations of Argentina,
the company operates with the following level: 1.
This is the highest classification in the system. It means that the
company/person is fulfilling correctly its current Credit
obligations. This is therefore positive information that will
enable the granting of any line of credit.

 

There are no rejected checks for the company.

HISTORY

 

 

1899: John Barbey founded the company Reading Mitten
1912: Lee opens the clothing manufacturing plant in Kansas City
1919: The Reading company changed its name to Vanity Fair Silk Mills
1947: Wrangler Western is founded
1951: Vanity Fair starts to go public
1970: Opens the first VF Outlet store in Reading Pennsylvania
1986: VF doubles in size with the purchase of Blue Bell (Wrangler, Rustler, Jansport and RedKap)
1992: VF entering the European market for lingerie through a series of acquisitions
1998: The corporate headquarters moves to Greensboro, North Carolina
1999: VF celebrates its centennial and launches a new corporate identity with the legend "We Fit Your Life"
2000: The North Face, Chic, Gitano and Eastpak is acquired
2003: VF acquires Nautica, John Varvatos and Earl Jean
2004: The acquisition of Vans, Kipling and Napapijri are important additions to the coalition Sportwear
2005: The Reef, Holoubak brand (licensed Harley-Davidson clothing) is acquired
2007: Brands Eagle Creek, Majestic Athletic, Seven For All Mankind, LLC and Lucy are incorporated
2008: VF acquires Ella Moss and Splendid.
2011: VF acquires the Timberland brand

 

 

PRINCIPAL ACTIVITY

VF VF Jeanswear Argentina SRL is an international corporation with head office in Greensboro, NC, USA. It was founded in 1748 and its main activities are the design, manufacture and sale of fashion and clothing. It has a large and diverse portfolio of brands jeanswear, outdoor, imagewear, sports and contemporary. VF Latin America, belongs to the Jeanswear coalition is comprised of the following countries: Argentina, Brazil, Chile and Peru, being the headquarters of the region in Buenos Aires province. VF Jeanswear Latin America, markets directly the Wrangler, UFO, Lee and Riders brands.

Products/Services description:

Jeanswear, outdoor, imagewear, sports and contemporary clothes

Brands:

AMARILLO
AMERICAN DENIM
CHARRUA
CP 739
CP 739 WADOS LAST JCH WILD
CUSTOMER
FREMONT
HANFORD
HIGH QUALITY JEANS WADOS FIVE STAR PREMIUM JEANS FOR EXTREME RESISTANCE AND DURABILITY
HOOVER
SUNFLAIR
THE GOLDEN WASH
VIA-VAI
WADOS
WADO'S
WADOS FIVE STAR PREMIUM DENIM
WADOS WADOS
WESTFOR

Sales are:

Wholesale

Clients:

MANUFACTURA DE PILAR SA

Suppliers:

FINOTEX SA
Colombia

Operations area:

National & International

The company imports from

Colombia

The company exports to

Paraguay

The subject employs

480 employees

Payments:

Regular-made on a 35-45 day basis-monitored over the last 6 months

 

 

LOCATION

 

Headquarters :

 Av Santa Rosa 126, F5310 Aimogasta, La Rioja, Argentina

Comments:

This is the manufacturing plant

Branches:

Francisco De Laprida 1550 Vicente Lopez 1602 EFB Buenos Aires

 

MAIPU 942 PISO 9º CAPITAL FEDERAL

 

This is a retail store location in Buenos Aires

 

 

 

 

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

NO

Capital:

NA

Shareholders %:

This is a private company. It is a subsidiary of:

VF Corporation
105 Corporate Center Blvd.
Greensboro, North Carolina 27408
Phone:  (336) 424-6000

Management:

Juan Bautista Gonzalez del Pino, Account Manager
Pablo Giqueaux, Accountant
Maria Jose Inda, Manager

Related Companies:

VF Corporation has offices in Brasil, Chile and Peru

 

 

FINANCIAL INFORMATION

 

 

This is a private company which does not make its financial figures public.  The following information has been confirmed by private sources.

2013 USD

 

Revenue

2 500 000

Cash Flow

Normal

 

 

Exports
Annual FOB USD

 

2014

1.601

2013

6.906

2012

1.706.703

2011

489.970

2010

1.163.350

2009

181.282

 

 

LEGAL FILINGS

 

 

There are no legal/crimminal connected to the subject.

 

 

SUMMARY

 

 

VF VF Jeanswear Argentina SRL is an international corporation with head office in Greensboro, NC, USA.

It has 33 years of experience in the market with a large sized structure. The company is controlled by the US parent company and works with well known brands.

There are no negative and according to the Central Bank, it has a good payment behaviour.

 

 

RISK INFORMATION

 

DEBTS

Total debt of AR$ 7 487 000

PAYMENTS

Regular

CASH FLOW

Normal

STATUS

Active

 

 

ENTERVIEW

 

NAME

Maria

POSITION

Manager

COMMENTS

She confirmed plant location, store and brands. She refused to provide more data.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.00

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.